Fed's Dot Plot and Stablecoin Volumes
The latest Fed dot plot certainly put a damper on some of the earlier dovish expectations. Watching the reaction in the broader crypto space, particularly stablecoin volumes. If higher-for-longer rates become the entrenched view, does that further solidify the appeal of efficient, low-friction stablecoin settlements for international trade or does it push the focus back to traditional FX hedging? Seeing $CADUSD inching up today to 0.71443, perhaps some unwinding there. For merchants using stablecoin on/off-ramps, that yield differential on fiat vs. stablecoin cash balances has to be a constant consideration. My focus is on how fintechs offering these services adapt their yield strategies and what that means for broader adoption, especially with $PYUSD holding steady at 0.99958. It's a nuanced play between macro headwinds and the inherent efficiency gains.